April Sees Multiple Bills on the Rise for UK Households

By HOAR Team 31 March, 2025 5 mins read 33 Views

Households across the UK are bracing for higher bills this week as April marks a series of price increases.

Experts estimate that millions of households will face an additional £416 annually thanks to these increases.

However, the exact impact on each household varies depending on location and individual circumstances.

The new rates take effect on Tuesday, April 1.

Here’s how these changes might affect you:

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Water Bills

Water companies in England and Wales are set to raise bills by an average of £10 each month.

The increase varies among different providers, so it's important to check the specific rate hike from your supplier.

For instance, Anglian Water will increase its prices by 19%, bringing the annual cost to £626.

Southern Water customers will experience a larger jump of 47%, raising their yearly bills to £703.

The firms justify these rises as necessary for investing in infrastructure and expanding reservoir capacities.

Usage levels and the presence of a water meter will also influence your bill, so reducing consumption or installing a meter might help mitigate the increase.

Council Tax

Most local councils are set to raise council tax this year.

In England, the majority can only increase the tax by 4.99% unless they conduct a referendum or local vote.

Smaller councils without social care responsibilities are limited to a 2.99% increase.

The Government has permitted Bradford, Newham, Birmingham, Somerset, and Windsor and Maidenhead to exceed the 4.99% cap.

Meanwhile, in Wales, there is no similar restriction, allowing council tax rates to rise by up to 15%.

Energy Bills

The energy price cap is set to rise this week, resulting in an average household energy bill increasing by £111 annually to £1,849.

Ofgem, the energy regulator, reviews the cap every three months, setting limits on what suppliers can charge for gas and electricity.

This rise is driven by higher wholesale costs and inflation pressures.

Your actual bill will depend on your energy usage, so reducing consumption and installing a smart meter could help manage costs more effectively.

Broadband and Mobile

Mobile providers typically adjust their prices around this time, and companies like BT, EE, O2, Three, Vodafone, and Tesco Mobile have announced increases for April.

New regulations require companies to inform customers of any price changes in pounds and pence, including when they will occur.

For example, EE and BT will increase the cost of their Sim-only contracts by £18 annually, while O2 will raise charges by £21.60 each year.

Additionally, broadband providers will also see price hikes starting April 1. Most will raise their fixed rates by £36 per year, with Virgin Media increasing by £42.

TV Licence

The TV licence fee is set to rise by £5, reaching £174.50 this week.

Those aged 75 or older may qualify for a free licence if they or their partner receive Pension Credit.

Car Tax

The flat rate for car tax is increasing by £5, bringing the annual cost to £195.

The amount you pay depends on your vehicle’s registration year and whether it runs on petrol or diesel.

There is a significant change for electric car owners, as these vehicles will no longer be exempt from paying car tax starting next week.

Electric vehicles registered from April 2025 will be charged the lowest rate of £10 in the first year before moving to the standard rate. The standard rate will also apply to electric vehicles first registered after April 2017.

Stamp Duty

Stamp duty land tax (SDLT) requires a one-time payment when purchasing property above a certain value.

The thresholds are being lowered this week, meaning buyers will now pay stamp duty on properties over £125,000 instead of the previous £250,000 threshold.

First-time buyers previously paid no stamp duty on homes up to £425,000, but this exemption is decreasing to £300,000.

Frequently Asked Questions

What is the role of central banks in the economy?

Central banks manage a nation's currency, money supply, and interest rates. They implement monetary policy to control inflation, stabilize the currency, and foster economic growth. They also serve as lenders of last resort to the banking system during financial crises.

What are the benefits of having an emergency fund?

An emergency fund provides financial security by offering a safety net for unexpected expenses, such as medical emergencies or job loss. It helps prevent debt accumulation, reduces stress, and allows for better financial planning, ensuring that individuals can navigate unforeseen circumstances without significant hardship.

What are credit scores and why are they important?

Credit scores are numerical representations of an individual's creditworthiness, calculated based on credit history, payment behavior, and debt levels. They are important because they impact the ability to obtain loans, credit cards, and favorable interest rates, affecting overall financial health.

What is a budget deficit?

A budget deficit occurs when a government's expenditures exceed its revenues over a specific period, usually a fiscal year. This can lead to increased borrowing and national debt if not addressed through spending cuts or revenue increases.

What are the different types of money?

The main types of money include commodity money, which is based on physical goods like gold or silver; fiat money, which is government-issued currency not backed by a physical commodity; and digital currency, which exists electronically and is often decentralized, such as cryptocurrencies.

What is the difference between saving and investing?

Saving typically involves setting aside money in a secure account for short-term needs or emergencies, while investing involves using money to purchase assets like stocks or real estate with the expectation of generating a return over the long term. Investing carries higher risks but offers the potential for greater rewards.

What is the definition of money?

Money is a medium of exchange that facilitates transactions for goods and services. It serves as a unit of account, a store of value, and a standard of deferred payment, allowing individuals to compare the value of diverse products and services.

Statistics

According to the World Bank, around 1.7 billion adults worldwide remain unbanked, lacking access to basic financial services.
A study by the National Endowment for Financial Education found that 60% of Americans do not have a budget.
Research by the National Bureau of Economic Research found that individuals who receive financial education are 25% more likely to save than those who do not.
The average return on investment for the S&P 500 over the past 90 years is about 10% per annum.
According to a survey by the Financial Industry Regulatory Authority (FINRA), about 66% of Americans could not correctly answer four basic financial literacy questions.
A report by Bankrate indicated that only 29% of Americans have a written financial plan.
According to the Bureau of Labor Statistics, the average American spends about $1,500 per year on coffee.
The average cost of raising a child in the U.S. is estimated to be around $233,610, according to the U.S. Department of Agriculture.

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How To

How To Improve Your Credit Score

Improving your credit score is a gradual process that requires consistent effort. Start by obtaining a copy of your credit report from the major credit bureaus to identify any inaccuracies or negative entries. Pay your bills on time, as payment history accounts for a significant portion of your credit score. Reduce your credit card balances to maintain a low credit utilization ratio, ideally below 30%. Avoid opening new credit accounts frequently, as this can negatively impact your score. Lastly, consider becoming an authorized user on a responsible person's credit card to benefit from their good credit habits. Regularly monitor your credit report to track your progress.